US Congress green-lights India-US fighter jet engine deal
The United States (US) Congress on Wednesday approved a deal with India that will allow American conglomerate General Electric (GE) to jointly produce engines for military aircraft in India. Notably, GE offered to partially share the technology with the Indian government-owned Hindustan Aeronautics Limited (HAL) for it to domestically produce F-414 engines for a second generation of light-combat aircraft as a licensed manufacturer.
Why does this story matter?
India is reportedly the world's largest arms importer, and it relies on Russia for nearly half of its military supply. While the US wants India to reduce its military dependence on Russia, India is also looking at locally manufacturing military technology. The deal will make India-US security cooperation even stronger while countering China's growing dominance in the region.
Deal approved before PM Modi's visit, notification came later
"It is all clear from the legislative end. The sale was approved before Prime Minister Narendra Modi's visit. But, as per the process, the state department notified the House and Senate foreign relations committee on July 28," the Hindustan Times reported, quoting a source. After the notification, Congress representatives and senators have 30 days to object, the absence of which is considered an assent.
Deal's next steps could be discussed at G20 Summit
Both countries are likely to discuss the way forward for the deal during President Joe Biden's visit to India for the G20 Summit in September. During PM Modi's state visit to the US in late June, GE reportedly signed a Memorandum of Understanding (MoU) with HAL to manufacture fighter jet engines to power the Tejas Light Combat Aircraft Mk2.
80% of technology to be transferred under deal
The estimated worth of the deal, entailing an 80% transfer of technology, is around $1 billion. In the next two decades, India plans to produce over 350 fighter jets powered by the F-414 engine for the Air Force and the Navy. During a visit to India in March this year, Secretary of the US Air Force Frank Kendall called GE's offer a "breakthrough".
